Topic: Europe have one big problem the euro currency - page 3. (Read 547 times)

There are hundreds of imported materials and the euro is not weak as mentioned. Not wanting the euro is not a new issue, but it does not negatively affect the euro.

As you said, American hegemony keeps the dollar strong.

I think Russia's threat to Europe is an important issue that needs to be addressed. Russia and the USA are the quarterback states. The back of what these states say is usually full.

Despite all that has been said, I don't think there will be anything that will devalue neither the dollar nor the euro. They continue this way. Power does not change hands easily. It is even more difficult, especially when it comes to money.

For now, in my opinion, the euro still has hope of becoming solid and sustainable. The ease of spending on travel or cross-border commercial transactions without the need for currency conversion has quickly helped this currency gain the support of the people. The euro became one of Europe's most significant successes and is now the second strongest currency in the world. The euro creates convenience, reduces costs for Europeans and businesses, And unifies the European economy into a bloc. The EU needs to come up with policies to strengthen the single currency. The euro will be a tool to enhance economic independence and self-reliance in trade and finance. The euro will support Europe's economic, business, and financial freedom. They will no longer have to depend on the US dollar.

The European economy is still the largest in the world. Not to mention its large tourism incomes as Europe have a lot of places for tourist to enjoy and visit. Moreover, the number of luxury businesses in EU that is booming in the market currently. Hence, your points, in my opinion holds no bearing.

Regarding tourists, haven't you heard about the latest trend: many European cities are tired of tourists and are actually trying to get rid of them. Cities like Amsterdam and Venice are taking action to stop tourism. They are closing the cruise ship terminals, restricting river cruises, converting hotels into offices, imposing earlier closing times for clubs and pubs etc etc. IMO, this is the road to self-destruction. Stopping mass tourism is a really bad idea for the reasons you mentioned above.   

It is not about the power of the currency but the power of the nation(s) behind it. Sure the currency makes the nation powerful but also nation makes the currency powerful. We have seen Sterlin take a dip, it went down something like %20 in a few weeks span if I remember correctly a while back when their prime minister had to resign. Did that make UK weaker nation? Are we seeing them failing to even buy things they NEED, of course not they are still doing fine. Whereas in poorer nations like ours, we could see people having trouble getting what they need, at some point even food was so expensive that the government had to intervene and buy the food in order to sell cheaper. Its doing a bit better now, but still terrible, specially about rent, we have a huge problem, there are other nations who have the same issue, or even USA has this in some parts of it of course. So at the end of the day its just not about the currency between each other, but the governments facing each other that matters.

I agree that those three are quite strong. There will always be some people who see them going worse and think that they are going to keep being worse but the reality is that while they are going worse, other currencies go even worse, which is the trouble.

I believe that we are going to end up with a situation where it is going to take some time before people could make some changes, and because of that these three will stay as strong as possible. For that to change anytime soon, we need to reach to a point where it will have to be a lot bigger. I know that it will not be simple solution, but realizing them getting worse doesn't mean it's worse than other currencies is a way out for many people in the future without a doubt.

The US and European market is interconnected making them depend on each other. Each time the US increases its interest rate it always has some negative impact on the European currency. Just like the US, European nations understand the world economy and they know how to manipulate it for their benefit. We are still expecting the much anticipated BRICS currency that is projected to give these dominant currencies the needed competition.

OP might be getting it wrong if he is measuring the economic power or the worth of a nation's currency by available natural resources. Currently, the most profitable resources are humans and technology. These nations might not gave gold, silver, oil, and gas but they have the brainpower to maximize these resources because of their technological advancement. Currently the artificial intelligence, medical, IT, and electronic private sectors in Europe are far richer than most countries that boast of essential mineral resources.

OP's understanding of the European economy is very flawed. Euro is the 8th most powerful currency in the world. Also if I look at the financial data, multiple financial superpowers like Germany, France, Italy and Spain comes under the top 15 list where Euro is their main currency. So I am really not sure why do you think that Euro is not needed. It definitely has a very powerful place in the world economics. Also as icalical had correctly pointed out - you are forgetting about their tourism. The data shows that 538 million global tourists have travelled to Europe for vacation. So I am sure EURO is not going to go down anytime soon unless a nuke war happens.

Reference:
https://www.cmcmarkets.com/en/learn-forex/16-strongest-currencies-in-the-world
https://globalpeoservices.com/top-15-countries-by-gdp-in-2022/
https://www.condorferries.co.uk/tourism-in-europe-statistics

The euro currency is not in trouble the whole financial world's currencies are in trouble because the inflation rate keeps increasing and somewhere it is high and somewhere it is low. For example, the inflation rate is high in Europe too and in my place too. But the degree of high inflation depends if the people change their location. For example, if i have to earn in Euro then the inflation rate in my place will be dealt with easily.

As 1 euro in here become 318 pkr and if i talk about the dollar then 1 us dollar here in my country equals to 286 pkr. So, from these numbers tell me why the amount of 1 dollar is lesser than 1 Euro. Because the euro is not in danger but every currency is. if we go back to when there was a debt ceiling, inflation, the next financial crisis, etc. fuds and problems are going on in the US then many said Dollar is in trouble.

Even the BRICS formation also threatens the economies using dollars. Because they were going to degrade dollar. not Euro. Euro has its own marketplace while the dollar targets its own users so we should not consider the euro a troubled currency. But we might say the inflation rate is increasing. And to that, i agree.

All fiat currencies are in trouble, some more than others. Euro is one that is in trouble for the reasons that you explained, however..


This is not entirely correct. If the world geopolitical stance went against the U.S., this would not mean the end of oil. It would mean the end of the USD, and another reserve currency will take its place. Oil is just another commodity, and it is only under the tyranny of the U.S. due to its global dominance. One day, this might not be the case.

As for GBP, it's worthless. Use-case being forex? Please. The country and the banks are the only vested interests. If a better currency existed over GBP and the country could use it, they would. Forex markets won't miss them either.

China, well, they are much more powerful than we all think. So I won't undermine that currency other than the fact it is fiat, and subject to the same fate as what USD, EUR and GBP will inevitably face.

Russia has a lot of gold. A lot. So at least their currency could be backed by a store of value commodity if they choose to.


EUR is not the only fiat currency that fits into this bracket...and "smart guys" are already moving their money to better currencies than USD and GBP. Likely, they're moving to gold, bitcoin and other store of value currencies/assets, rather than another fiat currency that is just as junk as the other.

There are a lot of guys in mainland Europe who say life was better before the € when they used their own currencies. I know that it was much better to go on holiday in Europe to get a lot more local currency for my $.
The € has ruined economies, I don’t know if it’s practical or would ever happen but to revert to their own currencies & abolish the € would be great.

USD, Euro and Yuan are three fiat currencies that's really solid, I don't think one of them will failure because most of citizens are still believe in fiat currency as legal tender. I agree if fiat is worthless, but you need to compare Euro with other fiat currency, you will see Euro is strong as USD and Yuan.

However you have a choice to convert your fiat into Bitcoin and convert it back to fiat whenever you want to buy something in your country.

USA and China also have big debts. It's not just the EU. Britain also has big debts. Will the British pound collapse soon, because the UK has big debts? Probably not.
The people inside the Eurozone need the euro(because it's a legal tender). Why would a random person in China, India or Latin America need euro?
Do you really know how the value/price of a currency is determined? I don't give a damn, if nobody in the rest of the world needs euro. The only important thing is that the Europeans need euro. I don't know about any European, who needs Chinese yuan or Russian rubbles. Does that mean that the Chinese yuan and the Russian rubble are in trouble? Nope.

Lol, I have been hearing this demise of the Euro many years ago and till this day the currency is doing fine, you need to do more research first OP, don't just assume that because European countries lack resources it will affect their currency, Why hasn't that happened all this while then if it's genuine true?

Even some countries with good resources are not doing well, their currency is devalued and still going down, it's not always about resources mate, there is more to this whole thing.

Do you know that Sicily have mines full of sulfur? That's need for gunpowder, they have coal, steel, Timber and Wool, and these are resources.

Why i am not surprised. wait i know. I have read many topics of yours before. And i remember now that you always make such assumption based on knowledge limited to you. I am not bashing you i am just trying to understand the points you have made. Like why do you think that euro has nothing to provide others like why did you think it has no demand at all.

Euro is still the second most currency after US dollars i think, well even i am wrong but Euro still has better potential then Japanese yen and Chinese currency. i prefer you to read this article for better understand of why i think that.

But please do not forget to back up your statements with solid proofs because without any proofs and sources you are just making lame posts.

And not all countries are actually decoupling with China, Germany and even France are not leaving to trade with China. Euro will survive as long as there is something they can trade with the rest of the world. If the US is in recession the rest of the world is in recession. It's the smaller countries that are more susceptible since their reserves are more in USD, their currencies will plunge and inflation also affects the daily lives of everyone.

What I understand from the side of the exchange rate against any currency is not based on whether it is needed or not, it's the same with the Dollar which dominates the world and this currency has always been a necessity for the world economy. The euro is still the third largest currency and although their influence is not as strong as the dollar, the exact reason why the euro can't have a bigger impact is because they don't seek to rule the world, so their role can't affect the world economy.

That's just my assumption and I don't know if it's relevant to what actually happened, because the euro is still the third largest currency and they should be easier to dominate the global economic market and maybe we often see euros used to buy football players though the currency is still seen from the dollar as a comparison

Your words are not completely accurate. There are hundreds of advanced European heavy industry that the world needs and imports, in addition to tourism, agriculture and banking services.

But the problem with the euro is that many countries (including the European countries themselves) do not want it and want the dollar instead of it. Unfortunately, Europe is subject to the United States, and therefore they cannot bypass the dollar and adopt the euro as a base currency instead of the dollar.

Europe is a great economic power, but it loses its role and power because it falls under American hegemony. I think that the United States exaggerates the Russian threat to Europe to keep Europe under its control.

Your opinion is wrong. The EU economy is the third largest in the world, after the USA and China. On the other hand, I do not see the currency, the euro, as a bad thing. It is not as sought after as the dollar, but there are many developing countries with weak currencies where they accept euros as well as dollars, although not as many. It is certainly much better than most currencies in the world.

In my opinion, the European economy is still the largest economy in the world, but one thing is that they are deadlocked, dependent and too dependent on the US. Every decision they make is heavily influenced by the US. The US always seeks to contain all other countries so that no one can surpass it, including its allies. If I remember correctly, the British pound was also the dominant currency in the world until the USD took its place. And before the British pound dominated the world currency, the currencies of countries such as Portugal, the Netherlands... were the dominant currencies, but today all are dependent and under the direction of the US.